Seoul Mayor Oh Se-hoon's Low Birthrate Measures... Offering Bold Incentives Like Tax Audit Deferrals to Child-Friendly Companies

"Limits to Solving Low Birthrate Without Companies"... Focused Support for Underserved SMEs
Points Awarded for Childbirth Congratulatory Bonuses, More Benefits for Employees with Marriage, Pregnancy, and Childbirth
Substitute Workforce Support, Contract Bonus, and Tax Audit Deferral Based on Accumulated Points

The Seoul Metropolitan Government has decided to provide exceptional incentives such as tax audit deferrals and dispatch of replacement personnel to small and medium-sized enterprises (SMEs) that implement childbirth and childcare-friendly policies. Points will be awarded to companies that execute systems encouraging childbirth and childcare, and these companies will receive incentives based on their accumulated points. This is a measure to encourage voluntary participation by companies, with the key being the effective implementation of childcare-friendly policies.

On the 3rd, Seoul announced that as part of the 'Birth Support Seoul Project' to overcome low birth rates, it will promote the 'SME Work-Life Balance Point System,' which centers on such support measures.

The most notable feature of this system is that any attempt by SMEs to support childbirth, childcare, and work-life balance will be recognized and rewarded with incentives. Points can be earned for policies already implemented by companies themselves, such as using annual leave without reason or approval, a biweekly four-day workweek, and encouragement of telecommuting.

The indicators for earning points focus not only on existing childcare-friendly policies but also on the actual implementation of systems necessary for work-life balance. The system is based on three areas and 14 indicators: ▲'Creating an environment' where childbirth and childcare-friendly policies can be used ▲'Policy implementation' to utilize childcare-friendly policies and increase male participation in childcare ▲'Future generation support' that resonates with all generations.

For example, policies supporting pregnant, childbirth, and childcare employees earn between 100 and 1,000 points per case depending on the matter, while flexible work systems or half-day leave earn between 50 and 1,000 points per case. The more employees benefiting and the higher the grade, the greater the incentives. The entry barriers will be significantly lowered so that points can be earned simply by willingness to participate. Even participating in 'Work-Life Balance Point System Consulting' to guide business applications will earn points, and the criteria for the lowest grade will be set as low as possible.

Accumulated points can be used for incentives. Fourteen incentives have been prepared focusing on eliciting voluntary participation through rewards that companies find reasonable. Representative incentives include Seoul’s tax audit deferral, support for internship replacement personnel for employees on parental leave, 'Colleague Support Allowance' for employees substituting for those on parental leave, and compensation for Seoul-style childbirth leave pay. Financial and administrative support are also included. Financial support includes 'eligibility for interest differential support and preferential guarantee limits' through SME development funds. Bonus points and preferential support include ▲'Hi Seoul Company' certification bonus points ▲'SME Flexible Work Infrastructure Support Project' bonus points ▲'General Service Qualification Review' bonus points (up to 2 points), among others.

During the incentive awarding process, Seoul is considering setting higher points for indicators that are difficult to implement based on company feedback and applying different weights by industry to reflect industrial characteristics. Considering that companies may find it difficult to understand the system due to the new support method called the 'point system,' Seoul plans to operate on-site consulting. Guidance on childcare-friendly and work-life balance policies will also be provided during the consulting process. Additionally, to encourage more companies to participate in the 'Seoul SME Work-Life Balance Point System,' Seoul will closely cooperate with business-related organizations such as the Korea Chamber of Commerce and Industry and the Korea Federation of SMEs and actively promote the program.

Seoul Mayor Oh Se-hoon said, "Realizing work-life balance and childbirth and childcare-friendly environments in SMEs, where the majority of young people work, is key to overcoming low birth rates," adding, "Regardless of company size, we will continuously discover incentives that companies need so that everyone can enjoy a workplace culture where work and life are balanced."

This content was produced with the assistance of AI translation services.